ISE314-Ch25



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Ch 25 Production Planning and ControlSections: 1. Aggregate Production Planning and the Master Production Schedule 2. Material Requirements Planning 3. Capacity Planning 4. Shop Floor Control 5. Inventory Control 6. Extensions of MRP ©2008 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. This material is protected under all copyright laws as they currently exist. No portion of this material may be reproduced, in any form or by any means, without permission in writing from the publisher. For the exclusive use of adopters of the book Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover. 1 Production Planning and Control Concerned with the logistics problems in manufacturing: Managing the details of what, when, and how many products to produce And obtaining the raw materials, parts, and resources to produce them PPC solves these logistics problems by managing information PPC is the integrator in computer integrated manufacturing ©2008 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. This material is protected under all copyright laws as they currently exist. No portion of this material may be reproduced, in any form or by any means, without permission in writing from the publisher. For the exclusive use of adopters of the book Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover. 2 1 Production Planning Concerned with: 1. Deciding which products to make, how many of each, and when they should be completed 2. Scheduling the delivery and/or production of the parts and products 3. Planning the manpower and equipment resources needed to accomplish the production plan ©2008 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. This material is protected under all copyright laws as they currently exist. No portion of this material may be reproduced, in any form or by any means, without permission in writing from the publisher. For the exclusive use of adopters of the book Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover. 3 Activities in Production Planning Aggregate production planning – planning the production output levels for major product lines Must be coordinated with product design, production, marketing, and sales Master production planning – specific schedule (master production schedule) of the quantities of individual models in each major product line Material requirements planning (MRP) – detailed schedule of raw materials and parts production for models in master schedule Capacity planning – planning labor and equipment resources to achieve the master schedule ©2008 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. This material is protected under all copyright laws as they currently exist. No portion of this material may be reproduced, in any form or by any means, without permission in writing from the publisher. For the exclusive use of adopters of the book Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover. 4 2 and Computer-Integrated Manufacturing. This material is protected under all copyright laws as they currently exist. For the exclusive use of adopters of the book Automation. For the exclusive use of adopters of the book Automation. Third Edition. All rights reserved. Groover. 6 3 . Upper Saddle River. All rights reserved. Production Systems. Third Edition. by Mikell P. Inc. and Computer-Integrated Manufacturing. NJ. in any form or by any means. No portion of this material may be reproduced. in any form or by any means. Production Systems. Inc. Groover. without permission in writing from the publisher. No portion of this material may be reproduced. by Mikell P.. it attempts to take corrective action to address the deficiencies Major topics in production control: Shop floor control Manufacturing execution systems Inventory control Manufacturing resource planning Enterprise resource planning ©2008 Pearson Education. 5 Activities in a Production Planning and Control System ©2008 Pearson Education. NJ.Production Control Concerned with determining whether the necessary resources to implement the production plan have been provided If not. Upper Saddle River.. without permission in writing from the publisher. This material is protected under all copyright laws as they currently exist. Third Edition. Production Systems. This material is protected under all copyright laws as they currently exist. All rights reserved. 7 Aggregate Production Plan Indicates production output levels for the major product lines of the company ©2008 Pearson Education. Inc. This material is protected under all copyright laws as they currently exist. and Computer-Integrated Manufacturing. No portion of this material may be reproduced. NJ. without permission in writing from the publisher. Third Edition. Groover. in any form or by any means. Production Systems. Groover. For the exclusive use of adopters of the book Automation. and Computer-Integrated Manufacturing. NJ. by Mikell P.. without permission in writing from the publisher. in any form or by any means. 8 4 . All rights reserved. by Mikell P.Aggregate Production Planning Planning the production output levels for major product lines High-level corporate planning activity Must be coordinated with the plans of the sales and marketing departments Includes products that are currently in production Must consider current and future inventory levels of those products Also includes new products currently being developed Marketing plans for current and new products must be reconciled against total capacity resources of the company ©2008 Pearson Education. No portion of this material may be reproduced. For the exclusive use of adopters of the book Automation. Inc. Upper Saddle River.. Upper Saddle River. Inc. in any form or by any means. All rights reserved. Upper Saddle River. For the exclusive use of adopters of the book Automation. Groover. without permission in writing from the publisher. quantities and times ©2008 Pearson Education. Inc. Firm customer orders 2. by Mikell P. 9 Master Production Schedule Specific schedule of individual products. This material is protected under all copyright laws as they currently exist.. when they should be completed and delivered.Master Production Schedule The specific schedule of individual products and models that is derived from the aggregate production plan It is a list of the products to be manufactured. by Mikell P. and Computer-Integrated Manufacturing. and Computer-Integrated Manufacturing. Forecasted demand 3. Upper Saddle River. NJ. No portion of this material may be reproduced. This material is protected under all copyright laws as they currently exist. For the exclusive use of adopters of the book Automation. All rights reserved. No portion of this material may be reproduced. Third Edition. Groover.. and in what quantities Master production schedule includes three categories of items: 1. Production Systems. Production Systems. Spare parts ©2008 Pearson Education. 10 5 . in any form or by any means. Third Edition. without permission in writing from the publisher. NJ. Upper Saddle River.. All rights reserved. No portion of this material may be reproduced. For the exclusive use of adopters of the book Automation. and Computer-Integrated Manufacturing. Production Systems. For the exclusive use of adopters of the book Automation.Material Requirements Planning (MRP) Computational technique that converts the master production schedule for end products into a detailed schedule for the raw materials and components used in the end products Useful for dependent demand items. by Mikell P. Groover. NJ. NJ. in any form or by any means. Third Edition. Third Edition. Inc. by Mikell P. No portion of this material may be reproduced. not independent demand items Independent demand items Final products and spare parts Dependent demand items Component parts used in final products ©2008 Pearson Education. without permission in writing from the publisher. This material is protected under all copyright laws as they currently exist. This material is protected under all copyright laws as they currently exist. and Computer-Integrated Manufacturing. Upper Saddle River. Inc. 11 Structure of an MRP System ©2008 Pearson Education.. in any form or by any means. 12 6 . without permission in writing from the publisher. Groover. Production Systems. All rights reserved. Production Systems. For the exclusive use of adopters of the book Automation. Bill of materials file – product structure and list of component parts in each product 3. 14 7 . For the exclusive use of adopters of the book Automation. Inventory record file (item master file) – includes: Item master data – part number. in any form or by any means. without permission in writing from the publisher. All rights reserved. Groover. No portion of this material may be reproduced. Inc. Production Systems.. Master production schedule Expressed in terms of time buckets 2. This material is protected under all copyright laws as they currently exist. and Computer-Integrated Manufacturing. in any form or by any means. lead times Inventory status – time-phased record of inventory status Subsidiary data – purchase orders. This material is protected under all copyright laws as they currently exist. engineering changes ©2008 Pearson Education. Third Edition. by Mikell P. by Mikell P. All rights reserved. Groover. without permission in writing from the publisher. Upper Saddle River. NJ.. 13 Typical Product Structure ©2008 Pearson Education.Inputs to the MRP System 1. Upper Saddle River. No portion of this material may be reproduced. order quantities. NJ. and Computer-Integrated Manufacturing. Third Edition. Inc. 16 8 . without permission in writing from the publisher. For the exclusive use of adopters of the book Automation. in any form or by any means. Upper Saddle River.. Inc. 15 Complicating Factors in MRP Net requirements = gross requirements less on-hand inventories and less quantities on order Common use items – raw materials and components used on more than one product Lead times – scheduled delivery of end products must be translated into time-phased requirements of components and materials by factoring in lead times Ordering lead times – time between purchase requisition and receipt from vendor Manufacturing lead times – time between order release and completion ©2008 Pearson Education. All rights reserved. NJ. by Mikell P. and Computer-Integrated Manufacturing. For the exclusive use of adopters of the book Automation. Third Edition. in any form or by any means. No portion of this material may be reproduced. and Computer-Integrated Manufacturing.Inventory Record File ©2008 Pearson Education. No portion of this material may be reproduced. Upper Saddle River.. Production Systems. This material is protected under all copyright laws as they currently exist. All rights reserved. by Mikell P. Inc. NJ. Third Edition. Groover. without permission in writing from the publisher. Groover. Production Systems. This material is protected under all copyright laws as they currently exist. Production Systems. Reduction in inventory Quicker response to changes in demand Reduced setup and changeover costs Better machine utilization Improved capacity to respond to changes in master production schedule 6. in any form or by any means.. This material is protected under all copyright laws as they currently exist. NJ. 2. This material is protected under all copyright laws as they currently exist. in any form or by any means. All rights reserved. Exception reports 8. Upper Saddle River. Upper Saddle River. Rescheduling notices 4. Groover. Cancellation notices 5. by Mikell P. Inc. without permission in writing from the publisher. Production Systems. 17 MRP Benefits Reported by Users 1. Report of planned order releases in future periods 3. and Computer-Integrated Manufacturing. Performance reports 7. No portion of this material may be reproduced. Third Edition. All rights reserved. No portion of this material may be reproduced. Groover. For the exclusive use of adopters of the book Automation. Third Edition. Inventory forecasts ©2008 Pearson Education. 5. Aid in developing the master schedule ©2008 Pearson Education. Inc. by Mikell P. Inventory status reports 6. 3. without permission in writing from the publisher. 18 9 .. Planned order releases Purchase orders – to buy raw materials and parts Work orders – to make parts and products 2. 4. and Computer-Integrated Manufacturing. NJ. For the exclusive use of adopters of the book Automation.MRP Outputs 1. For the exclusive use of adopters of the book Automation. Groover. NJ. Production Systems. No portion of this material may be reproduced.Why Some MRP Systems Do Not Succeed 1. Capacity requirements planning – detailed capacity calculation for individual departments and work cells ©2008 Pearson Education. 20 10 . All rights reserved.. Third Edition. Inc. Rough-cut capacity planning – to assess feasibility of master production schedule 2. 19 Capacity Planning Concerned with determining labor and equipment resources required to meet the current master schedule as well as long-term future production needs of the firm Also serves to identify the limitations of the available production resources so that an unrealistic master schedule is not planned Accomplished in two stages: 1. This material is protected under all copyright laws as they currently exist. All rights reserved. No portion of this material may be reproduced. and Computer-Integrated Manufacturing. by Mikell P. For the exclusive use of adopters of the book Automation. NJ. without permission in writing from the publisher. This material is protected under all copyright laws as they currently exist. Third Edition. in any form or by any means. without permission in writing from the publisher. Inc. Production Systems. Groover. in any form or by any means.. by Mikell P. Application was not appropriate Usually because product structure did not fit data requirements of MRP 2. Master production schedule was not coupled with capacity planning MRP generated an unrealistic schedule of work orders that overloaded the factory ©2008 Pearson Education. Upper Saddle River. and Computer-Integrated Manufacturing. MRP computations based on inaccurate data 3. Upper Saddle River. NJ. All rights reserved. Groover.. Inc. Groover. For the exclusive use of adopters of the book Automation. No portion of this material may be reproduced. Upper Saddle River. and Computer-Integrated Manufacturing.Two Stages of Capacity Planning ©2008 Pearson Education. NJ. This material is protected under all copyright laws as they currently exist. without permission in writing from the publisher. All rights reserved. taking in work during slack periods ©2008 Pearson Education. No portion of this material may be reproduced. and Computer-Integrated Manufacturing. layoffs Temporary workers Number of work shifts per period Labor hours per shift – overtime or reduced hours Inventory stockpiling – to smooth production and maintain steady employment Order backlogs Subcontracting – letting jobs during busy periods. in any form or by any means. Production Systems. Production Systems. 21 Short Term Capacity Adjustments Employment levels – hiring vs. in any form or by any means. by Mikell P. Inc. This material is protected under all copyright laws as they currently exist. Upper Saddle River.. by Mikell P. Third Edition. 22 11 . Third Edition. For the exclusive use of adopters of the book Automation. without permission in writing from the publisher. Production Systems. No portion of this material may be reproduced. Third Edition. by Mikell P. real-time inventory control.Long Term Capacity Adjustments New equipment investments New plant construction Purchase of existing plants from other companies Acquisition of existing companies Plant closings ©2008 Pearson Education. For the exclusive use of adopters of the book Automation. Production Systems. This material is protected under all copyright laws as they currently exist.. and acquiring current information on the status of the orders Manufacturing execution system (MES) . NJ. and labor tracking ©2008 Pearson Education. This material is protected under all copyright laws as they currently exist.. NJ. Groover. Upper Saddle River. Upper Saddle River. without permission in writing from the publisher. monitoring and controlling the progress of the orders through the plant. All rights reserved.the computer software that supports shop floor control Typically includes capability to respond to on-line inquiries about the status of orders in the shop Other MES functions may include generation of process instructions. and Computer-Integrated Manufacturing. in any form or by any means. No portion of this material may be reproduced. Third Edition. All rights reserved. 23 Shop Floor Control Concerned with releasing production orders to the factory. 24 12 . without permission in writing from the publisher. in any form or by any means. Inc. Inc. For the exclusive use of adopters of the book Automation. by Mikell P. Groover. and Computer-Integrated Manufacturing. by Mikell P. All rights reserved. Production Systems. and Computer-Integrated Manufacturing. in any form or by any means. Order scheduling 3. without permission in writing from the publisher. Inc. All rights reserved. For the exclusive use of adopters of the book Automation. No portion of this material may be reproduced. Order release 2. Inc. For the exclusive use of adopters of the book Automation. and Computer-Integrated Manufacturing. Third Edition. Production Systems.. Upper Saddle River. Third Edition. NJ. in any form or by any means. Groover.. NJ. without permission in writing from the publisher. Upper Saddle River. This material is protected under all copyright laws as they currently exist. No portion of this material may be reproduced. by Mikell P. This material is protected under all copyright laws as they currently exist. 26 13 . Groover.Three Phases in Shop Floor Control ©2008 Pearson Education. 25 Three Phases of Shop Floor Control 1. Order progress ©2008 Pearson Education. Machine loading – allocating orders to work centers Shop loading – loading all machines in the plant 2. Inc. Groover... All rights reserved. in any form or by any means. and Computer-Integrated Manufacturing. NJ. NJ. No portion of this material may be reproduced. All rights reserved. This material is protected under all copyright laws as they currently exist.Order Release Provides documentation to process a production order through the factory Documentation (shop packet): Route sheet – process plan Material requisitions – to draw raw materials from inventory Job cards . Production Systems. Third Edition. This material is protected under all copyright laws as they currently exist. without permission in writing from the publisher. Inc. Production Systems. in any form or by any means. by Mikell P. For the exclusive use of adopters of the book Automation. 27 Order Scheduling Assigns production orders to work centers in the plant Executes the dispatching function in production planning and control Solves two problems in production control: 1. No portion of this material may be reproduced. Third Edition. For the exclusive use of adopters of the book Automation. Upper Saddle River. and Computer-Integrated Manufacturing. Groover. 28 14 . Job sequencing – determining the sequence in which orders will be processed through each work center ©2008 Pearson Education. by Mikell P.to authorize transport of parts between work centers Parts list (if assembly) ©2008 Pearson Education. without permission in writing from the publisher.to report direct labor hours expended on order and track progress of order Move tickets . Upper Saddle River. by Mikell P. This material is protected under all copyright laws as they currently exist. by Mikell P. NJ. Groover. Groover. For the exclusive use of adopters of the book Automation. Inc.Priority Control Sets appropriate priority levels for production orders Possible dispatching rules in priority control: First-come-first-serve Earliest due date Shortest processing time Least slack time Slack time = time remaining until due date minus processing time remaining Critical ratio Ratio of time remaining until due date divided by processing time remaining ©2008 Pearson Education.. 30 15 . This material is protected under all copyright laws as they currently exist. Production Systems. Inc. without permission in writing from the publisher. NJ. WIP. without permission in writing from the publisher. other exceptions ©2008 Pearson Education. No portion of this material may be reproduced. All rights reserved. in any form or by any means.. Upper Saddle River. number that should have been completed Exception reports – overdue jobs. and other parameters that indicate production progress and performance Purpose is to provide information useful to manage the factory based on data collected from the factory Reports generated by order progress module: Work order status reports – whether orders are on schedule or behind Progress reports – number of orders completed vs. No portion of this material may be reproduced. in any form or by any means. 29 Order Progress Monitors the status of the orders in the plant. and Computer-Integrated Manufacturing. Third Edition. Production Systems. For the exclusive use of adopters of the book Automation. Upper Saddle River. Third Edition. All rights reserved. and Computer-Integrated Manufacturing. Groover. Inc.Factory Data Collection System Consists of the various paper documents. NJ. This material is protected under all copyright laws as they currently exist. without permission in writing from the publisher.. This material is protected under all copyright laws as they currently exist. Inc. in any form or by any means. Upper Saddle River. Production Systems. To provide current information to production foremen.. and automated devices throughout plant for collecting data on shop floor operations Includes methods to compile and process the data Functions of factory data collection system: 1. No portion of this material may be reproduced. by Mikell P. No portion of this material may be reproduced. All rights reserved. For the exclusive use of adopters of the book Automation. in any form or by any means. without permission in writing from the publisher. Upper Saddle River. terminals. 32 16 . Third Edition. Groover. and Computer-Integrated Manufacturing. Third Edition. NJ. plant management. 31 Types of Data Collected Direct labor time on each order Parts scrapped or needing rework Piece counts completed at each work center Equipment utilization and downtime Time clocks for employees ©2008 Pearson Education. To supply status and performance data to the shop floor control system 2. and Computer-Integrated Manufacturing. by Mikell P. Production Systems. For the exclusive use of adopters of the book Automation. and production control personnel ©2008 Pearson Education. All rights reserved. examples: Job traveler – workers must record their time spent. rejects. For the exclusive use of adopters of the book Automation. and Computer-Integrated Manufacturing. All rights reserved. Groover. without permission in writing from the publisher. in any form or by any means. Inc. by Mikell P. All rights reserved. 33 Automated and Semi-Automated Data Collection Systems Hardware and technology includes: Specialized keypads or conventional keyboards Optical bar code readers Other AIDC systems Configurations: One centralized terminal Satellite terminals Workstation terminals ©2008 Pearson Education. Production Systems. onto log sheet that travels with shop packet Employee time sheets – workers fill out daily time sheet indicating orders worked on. Upper Saddle River. in any form or by any means. and turned in Prepunched cards – similar to tear strips ©2008 Pearson Education. Inc. by Mikell P.Manual (Clerical) Data Input Techniques Production workers read and fill out paper forms indicating order progress data . For the exclusive use of adopters of the book Automation. without permission in writing from the publisher. Groover. Production Systems. Upper Saddle River.. NJ. etc. No portion of this material may be reproduced. Third Edition. This material is protected under all copyright laws as they currently exist.. 34 17 . filled out. pieces completed Operation tear strips – preprinted sheets that can be separated from shop packet.. NJ. No portion of this material may be reproduced. This material is protected under all copyright laws as they currently exist. Third Edition. piece counts. and Computer-Integrated Manufacturing. .Inventory Control Concerned with achieving an appropriate compromise between two opposing objectives: 1. Inc. and Computer-Integrated Manufacturing. Maximizing customer service Implies keeping large stocks on hand so the customer can immediately take possession ©2008 Pearson Education. Inc. No portion of this material may be reproduced. Storage costs Cost of space to store the inventory 3. For the exclusive use of adopters of the book Automation. NJ. by Mikell P. Upper Saddle River. All rights reserved. 36 18 . Third Edition. Groover. without permission in writing from the publisher. in any form or by any means. This material is protected under all copyright laws as they currently exist. without permission in writing from the publisher. Investment costs Cost of money tied up in inventory until the customer pays for the finished product 2. Third Edition. by Mikell P. All rights reserved. Groover. This material is protected under all copyright laws as they currently exist. No portion of this material may be reproduced. 35 Costs of Holding Inventory 1. these costs are referred to as carrying costs or holding costs ©2008 Pearson Education. in any form or by any means. For the exclusive use of adopters of the book Automation. and Computer-Integrated Manufacturing. Minimizing the cost of holding inventory Implies keeping inventory to a minimum 2. Cost of possible obsolescence or spoilage Reduction in value of inventory when it cannot be used Collectively. Production Systems.. Upper Saddle River. Production Systems. NJ. How many units should be ordered? Often solved by using economic order quantity formulas 2. and Computer-Integrated Manufacturing. No portion of this material may be reproduced. Groover. Upper Saddle River. Production Systems. For the exclusive use of adopters of the book Automation. Groover. without permission in writing from the publisher. No portion of this material may be reproduced. in any form or by any means. NJ. Inc. All rights reserved. and Computer-Integrated Manufacturing. Third Edition... 37 Inventory Model in Make-To-Stock Inventory level over time in a typical make-to-stock situation ©2008 Pearson Education. For the exclusive use of adopters of the book Automation. This material is protected under all copyright laws as they currently exist. 38 19 . in any form or by any means. by Mikell P. Inc. without permission in writing from the publisher. All rights reserved.Order Point Inventory Systems Concerned with two related problems that must be solved when managing inventories of independent demand items: 1. When should the order be placed? Can be solved using reorder point methods ©2008 Pearson Education. by Mikell P. NJ. This material is protected under all copyright laws as they currently exist. Upper Saddle River. Third Edition. Production Systems. and Computer-Integrated Manufacturing. without permission in writing from the publisher. NJ. Third Edition. without permission in writing from the publisher. NJ.. For the exclusive use of adopters of the book Automation. Csu = setup cost. Groover. Production Systems. This material is protected under all copyright laws as they currently exist. by Mikell P. All rights reserved. Cost of reordering or setup Equation for total inventory cost TIC TIC = Ch Q Csu Da + Q 2 where Ch = holding cost. Cost of holding inventory 2. Upper Saddle River. Inc. Groover. 39 Total Inventory Cost Equation Total annual cost of inventory includes two terms 1. Demand rate for the item is fairly constant 2.. For the exclusive use of adopters of the book Automation. in any form or by any means. by Mikell P. Third Edition. Upper Saddle River. This material is protected under all copyright laws as they currently exist. No portion of this material may be reproduced.Economic Order Quantity Formula Situations when EOQ formula is appropriate: 1. 40 20 . No portion of this material may be reproduced. Inc. Q = order quantity. in any form or by any means. Rate of production is significantly greater than the demand rate ©2008 Pearson Education. Production Systems. All rights reserved. and Computer-Integrated Manufacturing. and Da =annual demand for the item ©2008 Pearson Education. 41 Reorder Point Systems The actual demand rate for the item is not constant throughout the order cycle The time to reorder occurs when the actual inventory level falls below a point known as the reorder point ©2008 Pearson Education.. and Computer-Integrated Manufacturing. For the exclusive use of adopters of the book Automation. All rights reserved. the minimum cost order quantity can be determined Q = EOQ = 2 Da Csu Ch ©2008 Pearson Education. All rights reserved. This material is protected under all copyright laws as they currently exist. in any form or by any means. This material is protected under all copyright laws as they currently exist. by Mikell P. No portion of this material may be reproduced. without permission in writing from the publisher. Inc. and Computer-Integrated Manufacturing. No portion of this material may be reproduced. NJ. by Mikell P. Upper Saddle River. For the exclusive use of adopters of the book Automation. Groover. Production Systems. in any form or by any means. Inc. Groover. Third Edition. without permission in writing from the publisher.. Production Systems.EOQ Formula By taking the derivative of TIC with respect to Q and setting the derivative equal to zero. Upper Saddle River. 42 21 . NJ. Third Edition. This material is protected under all copyright laws as they currently exist. in any form or by any means..Operation of Reorder Point System When inventory level reaches the reorder point. For the exclusive use of adopters of the book Automation. by Mikell P. 44 22 . For the exclusive use of adopters of the book Automation. Inc. Inc. Third Edition. No portion of this material may be reproduced. Production Systems. Third Edition. Production Systems. Groover. NJ. All rights reserved. All rights reserved. This material is protected under all copyright laws as they currently exist. NJ. Upper Saddle River. 43 Extensions of MRP Manufacturing resource planning (MRP II) Enterprise resource planning (ERP) ©2008 Pearson Education. No portion of this material may be reproduced. and Computer-Integrated Manufacturing. the next order for quantity Q is placed ©2008 Pearson Education. Groover.. without permission in writing from the publisher. Upper Saddle River. without permission in writing from the publisher. in any form or by any means. and Computer-Integrated Manufacturing. by Mikell P. Third Edition. and controlling the materials. Third Edition. Groover. Upper Saddle River. Production Systems. 45 Enterprise Resource Planning (ERP) Defined as a computer software system that organizes and integrates all of the data and business functions of an organization through a single. order entry. and Computer-Integrated Manufacturing. Production Systems.users access the system through their PCs ERP operates company-wide. All rights reserved. All rights reserved. production scheduling and control.. central database The functions include: Sales Marketing Purchasing Operations Logistics Distribution Inventory control Accounting Finance Human resources ERP runs as a client-server system . in any form or by any means. in any form or by any means. For the exclusive use of adopters of the book Automation. Upper Saddle River. by Mikell P.. Inc. without permission in writing from the publisher. resources. not just plant-based ©2008 Pearson Education. For the exclusive use of adopters of the book Automation. No portion of this material may be reproduced. NJ. This material is protected under all copyright laws as they currently exist. NJ. without permission in writing from the publisher. and supporting activities needed to meet the master production schedule Typical modules in MRP II: Management planning – aggregate production planning. finished goods inventory Operations planning – MRP enhanced with capacity requirements planning Operations execution – purchasing.Manufacturing Resource Planning (MRP II) Computer-based system for planning. shop floor control ©2008 Pearson Education. Groover. by Mikell P. master production scheduling Customer service – sales forecasting. scheduling. This material is protected under all copyright laws as they currently exist. Inc. No portion of this material may be reproduced. 46 23 . and Computer-Integrated Manufacturing. Third Edition. NJ. No portion of this material may be reproduced.payroll. in any form or by any means. For the exclusive use of adopters of the book Automation. Groover. employee personal data ©2008 Pearson Education. by Mikell P.ERP Uses a Single Database Avoids problems such as Data redundancy or conflicting data in different databases Time delays in entering the data Communication issues between different databases Everyone in the organization has access to the same sets of data according to their individual job responsibilities Not all of the data can be accessed by all employees ©2008 Pearson Education. customer service.. delivery. All rights reserved. 47 ERP Systems Include Multiple Software Modules Each module is focused on a different business function or group of functions Modules are integrated through the ERP framework Modules can be classified into four main groups 1. in any form or by any means. No portion of this material may be reproduced. training. NJ. and Computer-Integrated Manufacturing. accounts payable 4.MRP II. Upper Saddle River. Production Systems. cost control. master production scheduling. Third Edition. Groover.budgeting. Upper Saddle River. Production and materials management . asset management. Finance and accounting . All rights reserved. 48 24 . Inc. For the exclusive use of adopters of the book Automation. benefits. without permission in writing from the publisher. invoicing. Production Systems. job descriptions. product returns 3. Inc. Human resources . without permission in writing from the publisher. by Mikell P.order input. process planning 2. Sales and marketing .. This material is protected under all copyright laws as they currently exist. This material is protected under all copyright laws as they currently exist. and Computer-Integrated Manufacturing.
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